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RIYADH – Saudi Arabia’s Financial Intelligence Unit has stepped a campaign against money laundering and terror funding operations by inspecting real estate and brokerage offices as well as other vital sectors that are likely to be involved in financial crimes.
The department has received more than 13,000 intimations related to money laundering and terror funding during the past 12 years.
“The growing number of these financial crimes has raised concerns around the world and shaken economies of many countries,” said a senior FIU official.
The Saudi government has imposed tough punishment on those involved in money laundering and terror funding, which reached up to 15 years in prison and SR7 million fine.
“It has confiscated money worth billions of riyals,” Al-Hayat Arabic daily quoted the official as saying.
The number of calls and intimations received by the financial intelligence unit on suspicious money laundering and terror funding cases jumped from 405 in 2006 to 1,842 in 2011, 2,077 in 2012 and 2,379 in 2013, the paper said. The number of cases dropped slightly in 2014 to 2,240.
“Most of these calls (8,800) came from financial institutions and from 23 non-financial organizations,” the official said. “We have received 1,035 calls from government agencies and 161 from individuals,” he pointed out.
The department said it was monitoring 2,285 bank accounts suspected of conducting money laundering and terror funding operations. “We have received 2,240 cases related to money laundering and 136 of these cases have been transferred to the investigation department,” he explained. The unit has received calls demanding investigation of 505 suspicious bank accounts.
“We have investigated 37 of 126 suspected cases related to terror funding in 2016,” the official said. “We have also received 188 requests from international agencies to provide information about suspected financial crimes,” he pointed out.
Saudi courts have issued verdicts on 983 financial crimes including 975 terror-funding cases and eight cases of money laundering. The punishment included imprisonment and confiscation of funds.
Last March, Riyadh police arrested a four-member gang including three Yemenis and an Egyptian involved in money laundering, Al-Hayat said. They had allegedly deposited millions of riyals in Saudi banks and then withdrew them, raising suspicion. Their case has been transferred to the Bureau of Investigation and Public Prosecution.
Money laundering is done in different forms including drug trafficking, theft of public money, arms trade, tax evasion, supply of fake products, tasattur trade and gambling. Major sectors where money laundering is suspected are real estate, gold and jewelry, luxurious cars, endowments, investment funds, law firms and auditing firms.
In 2013, Saudi Arabia announced financial rewards to citizens and residents who inform about money laundering operations and terror funding cases. It offered five percent of the money seized from such criminals to informants working outside the banking and financial sector.
Officials from the Ministry of Commerce and Investment inspected real estate and broker offices earlier this year to ensure they are free of financial crimes.
© The Saudi Gazette 2017
